Best Funeral Home Business Insurance

The Hartford earned our top ranking for funeral home business insurance providers with a MoneyGeek score of 4.78 out of 5. It offers funeral directors competitive rates, quality customer service and comprehensive coverage options. NEXT and Progressive Commercial also provide strong insurance solutions for funeral service providers.

Note: We based all scores on a funeral home business with two employees across professional liability, general liability, workers' comp and BOP policies.

The Hartford offers funeral directors the most affordable overall coverage at $53 monthly or $635 annually. The company ranks first for BOP ($64 monthly) and professional liability ($73 monthly), with second-lowest rates for general liability and workers' compensation. NEXT Insurance offers the lowest rates for workers' compensation ($25 monthly) and general liability ($44 monthly) for funeral home businesses.

In general, business insurance costs for funeral homes cost the following for the four most popular coverage types:

• General Liability: $61 on average per month, ranging from $44 to $81, depending on the state
• Workers' Comp: $27 on average per month, ranging from $25 to $31, depending on the state
• Professional Liability (E&O): $81 on average per month, ranging from $73 to $94, depending on the state
• BOP Insurance: $89 on average per month, ranging from $64 to $109, depending on the state

The required coverage for a funeral director includes workers' compensation and commercial auto insurance if you have employees or operate hearses. Beyond legal requirements, funeral homes need general liability and professional liability coverage to protect against visitor injuries and claims of mishandling remains.

• Workers' Compensation Insurance: Required in nearly all states if you have employees. Covers funeral home attendants injured while lifting caskets, morticians exposed to embalming chemicals or drivers hurt during body transfers. Funeral directors typically carry $500,000 to $1 million in coverage for medical expenses and wage replacement.
• Commercial Auto Insurance: Mandatory in every state where you operate hearses or limousines. Protects your funeral home when hearses are rear-ended during processions or transport vans are involved in accidents while moving remains. Funeral service providers need $500,000 to $1 million in liability limits for specialized funeral vehicles.
• General Liability Insurance: Protects your funeral home when mourners slip on icy walkways before viewings or elderly visitors fall on chapel steps during services. Covers medical bills and legal fees if families sue over injuries at your mortuary. Most funeral directors carry $1 million per occurrence limits.
• Professional Liability Insurance (E&O): Essential when families claim you cremated the wrong body, ordered incorrect caskets or mishandled remains during preparation. One lawsuit alleging professional negligence could bankrupt your funeral service business. Funeral home operators typically need $1 million to $2 million in coverage.
• Commercial Property Insurance: Protects your funeral home building, prep room equipment, casket showroom inventory and embalming machinery from fire or storm damage. Critical if you own your facility, as replacing cremation equipment and refrigeration units costs hundreds of thousands without coverage.
• Business Owner's Policy (BOP): Bundles general liability and property coverage at lower rates for funeral homes. Covers visitor injuries, building damage and lost income when burst pipes flood your chapel, forcing you to cancel services. Saves funeral directors money while maintaining comprehensive protection.

Finding the best and cheapest business insurance for your funeral home requires comparing quotes and understanding how to get business insurance that fits your specific needs as a funeral director.

The Hartford offers funeral directors the best combination of affordability and service, with comprehensive coverage starting at $53 monthly and a 4.78 MoneyGeek score. Funeral home businesses need workers' compensation for employee injuries, commercial auto for hearses, general liability for visitor accidents and professional liability to protect against negligence claims from grieving families.

We answer frequently asked questions about Funeral Home business insurance:

We selected the best business insurer for funeral-home companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue